When is options backdating legal
In addition, backdating raises issues related to sensible governance, alignment of shareholder interests and adequacy of internal controls as it is viewed as means to steal money from shareholders.
Spring-loading, Bullet-dodging These are two tactics related to the options backdating game.
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I did a search on Apple and not much turned up--sorry if this was posted. I've heard of some companies that have since readjusted their stock benefits (though I can't say I specifically heard of backdating, though that is what I assumed at the time) as to not to screw employees that got hired during the dotcom boom.
Failure in fulfilling these conditions can invite allegations that the company acted fraudulently and it may have to restate its financial statements to rectify the errors.
By backdating stock options, that employee's profits are even larger, providing even more incentive for the employee to work hard and stay with the company.
A number of companies are currently undergoing investigations into this matter by the Securities and Exchange Commission (SEC).
In order to recover damages in a lawsuit against your company for backdating, you will have to prove fraudulent intent, which can be very hard to do.
An attorney with experience in securities law will be able to represent you should you wish to take action against the illegal pratices of your company.